Focus on illegal gold mining

This edition of Business Africa highlights the issue of illegal gold mining and its impact on African economies. The report underscores the scale of the problem across the continent, particularly in regions where unregulated extraction is widespread.

Gold smuggling to UAE

According to the Global Initiative Against Transnational Organized Crime, 66.5 percent of African gold exports to the United Arab Emirates in 2022, amounting to around 405 tons, were likely smuggled. This suggests a significant portion of the continent’s gold trade operates outside legal frameworks.

Cameroon's economic loss

In Cameroon, illegal gold trafficking is estimated to have cost the state nearly 2,000 billion CFA francs. Much of the country’s gold production bypasses official channels, feeding opaque networks that undermine government revenue and economic stability.

Official vs. reported exports

Cameroon’s national mining company reported that between 2021 and 2025, 44 tons of gold were sent to Dubai, while officially declared exports totaled only 148 kilograms. This stark discrepancy highlights the challenges of tracking and controlling illicit gold flows.

Ivory Coast's crackdown

Ivory Coast is intensifying efforts to combat illegal gold mining. Despite penalties that can include up to 20 years in prison, the practice persists, especially in certain regions, causing significant environmental damage and undermining legal mining operations.

Ivorian Precious Metals Company

To address the issue, Ivory Coast has established the Ivorian Precious Metals Company. The initiative aims to formalize the supply chain and marketing of gold, helping to reduce the prevalence of illegal mining and its associated risks.

Burkina Faso's new refinery

Burkina Faso, a major West African gold producer, has launched its first gold refinery in Ouagadougou. This development is part of a broader strategy to refine and manage the country’s gold production more effectively.

Expanding gold sector

In addition to the refinery, Burkina Faso has acquired a new miner and two companies to oversee the marketing and monitoring of its gold. These steps reflect the country’s commitment to strengthening its gold industry and reducing reliance on informal networks.